Treasury Metals (TSX: TML; OTC: TSRMF) has entered a royalty agreement with an affiliate of Sprott Resource Streaming and Royalty with respect to the company’s 100%-owned Goliath gold complex 20 km east of Dryden, Ont.
Plans for the complex include development of an open pit and underground mine as well as a mill at the Goliath deposit, and advancement of the adjacent Goldlund and Miller gold mine projects.
Sprott will make an immediate payment of US$20 million to Treasury Metals in return for a 2.2% net smelter returns royalty covering all mineral produced from the Goliath gold complex.
Treasury intends to use the funding to advance the Goliath project to a construction decision. “With the desire to consider financing alternatives that are less dilutive to our shareholders, we undertook a process to explore the potential for the sale of a royalty that culminated in the agreement we announced today,” said Treasury president and CEO Jeremy Wyeth in a release.
For the rest of this article: https://www.canadianminingjournal.com/news/treasury-metals-sells-goliath-royalty-for-us20m/